OECD: Signs euro zone crisis is hitting China

Aug 31 - The slowdown in Europe is impacting Chinese exports at a critical time in the country's economy, according to Pier Carlo Padoan, Chief Economist at the OECD.

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I'm here in Jackson Hole Wyoming talking to top economists after Fed Chairman Ben Bernanke's big speech. Joining me now is OECD chief economist here hot and very good to talk to you. Talk to you now used to what you heard from mr. Bernanke put this in perspective if you go for what we might see in terms of global coordinated action. Well chairman Bernanke is concerned about the US weakening -- right. But if I think about Europe tonight I think how much worse you're looks we do expect US army and more worried. Also because we are seeing signs of weakening -- emerging economies of the global economy as such is not doing better. I wanna ask you specifically about China since you mention global economy how much risk is China. It developed nations terms of the -- -- -- well China has been an engine of growth for a long period now. And they're beginning to see signs that the your -- prices hurting China's exports. This in the middle of a great transformational China's economy which is crucial to shoot two what's more domestic demand so we are concerned. In terms of Europe what is your greatest fear right now about what is happening in here and are you. At all confident it will get some. Steps in the right direction based on the upcoming ECB meeting and other moves. I am confident I'm hopeful. Do real problem would you or is that. You have to put together a number of factors both supranational government level to the right things and Nolan has to -- right. Everybody has to their home court. And this is -- condition for success. Is Greece going to make it. I think so and I think he should make it because if Greece goes out that move could spark off political contagion to other parts of -- area. I ask you about seventy issues about stability among the top central bankers as you know there were reports that the head of the Bundesbank is considering resigning. He has given no comment on that we know here and the US we have presidential election -- Republican candidate wins Ben Bernanke is not going to be nominated here and how concerned are you about stability among some of these top decision makers at this very crucial time. Well I think that beyond individuals. Central bankers as a group -- may say so. Have. Always represented a anchor of stability because the culture of stability he's in here and in central banking and this will continue will need to continue even with new ways and you instruments. But do you think that we might see wide scale recession. Not what we're already seeing in Europe we are seeing a weakening and possibly recession in Europe I do not think so I think that policy can cope. Of course always used to do a job in Europe and needless.

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